Buying a car while in bankruptcy is a complex process that requires careful planning and consideration. However, it is possible to purchase a vehicle while navigating financial hardship by understanding the legal implications and available options.
In the United States, the Bankruptcy Code governs the process of filing for bankruptcy. Under Chapter 7 bankruptcy, all nonexempt property is liquidated to pay off creditors. However, in Chapter 13 bankruptcy, individuals can reorganize their debts and create a repayment plan. This allows them to keep their assets, including their vehicle.